Import rise signals infrastructure, manufacturing growth
TANZANIA: IMPORTS of goods and services experienced a slight year-on-year increase through August, fuelled by ongoing investments in infrastructure and manufacturing.
The growth reflects rising domestic demand and underscores the importance of these sectors in supporting economic development and enhancing overall productivity.
Bank of Tanzania (BoT) latest monthly economic review for August shows that imports rose to 16.43 billion US dollar from 16.33 billion US dollar, in the previous year.
“Notable increases were recorded in refined white petroleum products, iron and steel and electrical machinery and equipment,” stated BoT report.
By facilitating access to essential materials and equipment, this trend supports infrastructure projects and enhances manufacturing capabilities, positioning the economy for sustainable growth and competitiveness in the global market.
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On a monthly basis, goods imports were 1.46 billion US dollar in August compared to 1.16 billion US dollar in the corresponding month last year.
The central bank report said further that the services payments amounted to 2.27 billion US dollar for the year ending August down from 2.45 billion US dollar in the year before.
This decline was driven by a decrease in other services as freight charges increased consistent with the import bill.
For the year ending August, the primary income account recorded a deficit of 1.76 billion US dollar higher than 1.44 billion US dollar recorded in the previous year with the increase attributed to a rise in interest payments.
On a monthly basis, the primary account deficit narrowed to 96.2 million US dollar in August compared to 114.9 million US dollar in August last year.
The secondary income account recorded a surplus of 556.5 million US dollar for the year ending August compared with 637.6 million US dollar in the corresponding period last year. The surplus is supported by an increase in personal transfers.
The monthly secondary account surplus was 43.5 million US dollar in August broadly the same as the corresponding period last year.
